Union Minister Pralhad Joshi inaugurated the implementation of Enterprise Resource Planning (ERP) system in Coal India Ltd (CIL).

An ERP platform, comprises a number of essential corporate capabilities to manage day-to-day business activities, including financial, human resources, sales and distribution and production and planning.

Benefits of ERP system:

• CIL needs an integrated system across the organisation in the form of a robust and proven state-of-the-art Enterprise Resource Planning (ERP) system to effectively plan, manage and optimize organisational resources — men, machines, materials and money to maximise the socio-economic value to its stakeholders.

• ERP will lead to a number of tangible benefits such as consolidation of operational costs, enhanced productivity, faster collections, improved cycle times, efficient asset management, expense control, inventory reduction, improved work life balance of senior management, etc. 

• ERP also provides intangible benefits such as better employee and customer relationship, improved and well-informed decision making, transparency, compliance, standard and streamlined processes, improved employee satisfaction, business Intelligence, best business practices, etc. 

• The primary objective of the project is to position CIL as a global player in the energy sector. 

• ERP will establish best business practices, standardise and unify business processes across CIL and its subsidiaries. 

• ERP is a tool of information technology intervention, which will help CIL improve its business performance and growth with enhanced data integrity and cost effectiveness. 

• This will help the national miner evolve as a global player. 

Coal sector

• Coal, as primary commercial energy fuel, has been sustaining the country’s energy requirements for decades and would continue to retain its relevance for a few more decades as well. With around 55 per cent share, coal occupies the major space in India’s energy basket.

• Of the country’s total power generation of 1378.525 Billion Units (BU) during 2020-21, including renewable energy sources, coal based generation was 950.751 BU which is around 69 per cent highlighting coal’s importance.

• Additionally, coal continues to stoke many non-power industries as well including cement, fertilizers, sponge iron, aluminium and a host of other industries.

• The world over many countries are moving away from coal but the Indian context is different. In India, what makes coal a preferred energy fuel is its abundance, availability and affordability. Until alternative energy sources start making significant contributions, there is no replacement for coal as the country’s irreplaceable prime energy source.

• With coal commanding such prominence in the Indian energy sector, CIL is at the forefront of the nation’s coal production. CIL alone produces around 83 per cent of country’s entire coal output.

• Around 80 per cent of CIL’s total supplies are catered to the power sector.

Coal India Limited

• Coal India Limited (CIL) is a ‘Maharatna’ company under the ministry of coal, with headquarters situated in Kolkata.

• CIL is the single largest coal producing company in the world and one of the largest corporate employers.

• CIL operates through 85 mining areas spread over eight states. It has 345 mines of which 151 are underground, 172 opencast and 22 mixed mines.

CIL has eight fully owned Indian subsidiary companies:

• Eastern Coalfields Limited (ECL)

• Bharat Coking Coal Limited (BCCL)

• Central Coalfields Limited (CCL)

• Western Coalfields Limited (WCL)

• South Eastern Coalfields Limited (SECL)

• Northern Coalfields Limited (NCL)

• Mahanadi Coalfields Limited (MCL)

• Central Mine Planning & Design Institute Limited (CMPDI). 

• In addition, CIL has a foreign subsidiary in Mozambique namely Coal India Africana Limitada (CIAL). 

• CIL has incorporated two new subsidiaries — CIL Navikarniya Urja Limited for development of non-conventional/clean & renewable energy and CIL Solar PV Limited for development of solar photovoltaic modules.

• CIL is headed by a chairman-cum-managing director. He is assisted by four functional directors. 

• Each subsidiary company has its own board of directors headed by chairman-cum-managing director. 

Genesis of Coal India Limited

• Following the Indian Independence, a greater need for coal production was felt for industrial development. Integrated approach in overall planning in coal mining is a post-Independence phenomenon. 

• National Coal Development Corporation (NCDC) was formed in 1957 with 11 collieries with the task of exploring new coalfields and expediting development of new coal mines.

• The growing apathy of the private owners to invest in coal mining added with oil price shock, threatening energy security in the country, prompted government to nationalise coal mines in the country in two phases in the seventies with a view to ensuring  safety, conservation and scientific development of huge reserve of coal that the country was endowed with. 

• The government took over all the coking coal mines in October 1971 and nationalised them on May 1, 1972. Bharat Coking Coal Limited was thus formed. 

• Subsequently, non-coking coal mines were nationalised in 1973, owned by Coal Mines Authority Limited (CMAL). 

• In 1975, NCDC and CMAL were merged and Coal India Limited was established.

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